Real Estate Dispute Resolution
Real Estate Contract Disputes
Mediation Required by
Colorado Contract to Buy and Sell Residential Real Estate**
If a dispute relating to a Contract (prior to or after Closing) is not resolved, the parties must first proceed, in good faith, to mediation. Mediators cannot impose binding decisions. Before any mediated settlement is binding, the parties to the dispute must agree to the settlement, in writing. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The obligation to mediate, unless otherwise agreed, will terminate if the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at that party’s last known address. Neither party is prohibited from filing a lawsuit and recording a lis pendens affecting the Property, before or after the date of written notice requesting mediation.
Earnest Money Disputes
Mediation Required by
Colorado Contract to Buy and Sell Residential Real Estate**
Except as otherwise provided the Earnest Money Holder must release the EarnestMoney following receipt of written mutual instructions, signed by both Buyer and Seller. In the event of any controversy regarding the Earnest Money, the Earnest Money Holder is not required to release the Earnest Money. Earnest Money Holder, in its sole subjective discretion, has several options: (1) wait for any proceeding between Buyer and Seller; (2)interplead all parties and deposit Earnest Money into a court of competent jurisdiction (Earnest Money Holder is entitled to recover court costs and reasonable attorney and legal fees incurred with such action); or (3) provide notice to Buyer and Seller that unless Earnest Money Holder receives a copy of the Summons and Complaint or Claim containing the case number of the lawsuit within one hundred twenty days of Earnest Money Holder’s notice to the parties, Earnest Money Holder is authorized to return the Earnest Money to Buyer. If Earnest Money Holder receives a copy of the Lawsuit and has not interpled the monies at the time of any Order, Earnest Money Holder must disburse the Earnest Money pursuant to the Order of the Court. The parties reaffirm the obligation of Mediation.
Real Estate Remodeling & Construction Disputes
Private construction and remodeling companies use a wide variety of contracts usually prepared by a legal team. These contracts may or may not require mediation or arbitration.
If mediation or arbitration is not contractually required, Parties may file in Small Claims Court or Civil Court. Colorado courts now routinely require mediation prior to setting the hearing date on the docket.
When all parties agree, disputes may be submitted to binding Arbitration. Arbitration for real estate construction and remodeling disputes is a speedy way to resolve issues with less cost. Parties are welcomed to present their case Pro se if they chose (pro se = representing oneself without an attorney.) Arbitration is less formal; many Parties through the years have reported feeling comfortable in stating their case, presenting their exhibits and witnesses, and concluding with closing statements.
When Parties attend Mediation Pro se (representing themselves,) the Mediator can collaboratively drafts agreements with the participants that capture the essential terms and conditions of the settlement. The Memorandum of Understanding | MOU is reviewed by the Parties, signed, and submitted to court for order and enforcement.
In Mediation, all parties have a voice in creating an agreement that works, which increases compliance with its terms and conditions, and a greater degree of satisfaction when the negotiation process is complete.
The Expense.
The Stress..
The Waiting...
We Can Help
Colorado is one of the hottest real estate markets in the US and has been for several years. The disputes over earnest money, condition of inspection items, required disclosures and other issues that arise can be quickly and inexpensively resolved in mediation.